HARLEY DAVIDSON
COMPANY FOCUS
ACCT 501
April 24, 2005
Jim Bew
Introduction
This paper will explore the merits of Harley Davidson, Inc. using a financial statement analysis perspective. Selected key financial measures will be obtained from various business and investment information sources to perform a SWOT analysis. The objective of this research will be to apply the accounting knowledge obtained from this course to develop a business perspective and investment recommendation for Harley Davidson, Inc.
The Business
Harley-Davidson, Inc., incorporated in 1981, is the parent company for the group of companies doing business as Harley-Davidson Motor Company (Motor Company), Buell Motorcycle Company (BMC) and Harley-Davidson Financial Services (HDFS). The Motor Company produces heavyweight motorcycles and offers a line of motorcycle parts, accessories, apparel and general merchandise. The Motor Company manufactures five families of motorcycles: Touring®, Dyna Glide®, Softail®, VRSC® and Sportster®. BMC produces sport motorcycles, including five v-twin XB models and the single-cylinder Buell Blast. BMC also offers a line of motorcycle parts, accessories, apparel and general merchandise. HDFS provides wholesale and retail financing and insurance programs primarily to Harley-Davidson/Buell dealers and customers. The Company operates in two principal business segments: Motorcycles and Related Products (Motorcycles) and Financial Services.
Motorcycles
The primary business of the Motorcycles segment is to design, manufacture and sell motor ...